Question

A bakery works out a demand ​f(x) for its chocolate chip cookies and finds it to be q = D(x) = 585-25x, where q is the qty of cookies sold when the price per cookie, in cents, is x. Use this information to answer parts a through f

a.) find the elasticity

E(x) = ______

b.) At what price the the elasticity of demand equal to 1?

____ cents (Round to the nearest cent as needed)

c.) At what prices is the elasticity of demand elastic?

a.) greater than 12 cents

b.) prices are elastic at all values

c.) prices cannot be elastic in this case

d.) less then 12 cents

d.) At what prices is the elasticity of demand inelastic?

a.) prices cannot be inelastic in this case

b.) less than 12 cents

c.) greater than 12 cents

d.) prices are inelastic at all values

e.) at what price is the revenue a maximum?

x = _____ cents

(round to the nearest cent as needed. use a comma to separate answers as needed)

f.) at a price of 21 cents per cookie, will a small increase in price cause the total revenue to increase or decrease?

Answer 1